Melrose Industries

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In 2003, Melrose Industries was launched on London's Alternative Investment Market with an initial market capitalisation of £10m; it had been established that same year by three individuals: David Roper, Christopher Miller and Simon Peckham.{{cite news |url=https://www.theguardian.com/business/2018/mar/29/melrose-trio-gkn-christopher-miller-david-roper-simon-peckham |newspaper=The Guardian |title=Melrose trio who sought biggest deal yet with GKN – and biggest challenge |first=Julia |last=Kollewe |date=29 March 2018 |access-date=6 January 2020 }} For many years, the three founders have been directly involved in managing the company; between 2003 and 2010, Melrose was headed by David Roper.

Melrose acquired Dynacast, a manufacturer of diecast parts and components, and McKechnie, an engineering group, in 2005;{{cite web |url=https://www.telegraph.co.uk/finance/2914306/Melrose-engineers-429m-deal.html |title=Melrose engineers £429m deal |date=22 April 2005 |newspaper=The Telegraph |access-date=10 April 2016}} it divested both McKechnie Aerospace and McKechnie PSM in exchange for $855m two years later.{{cite web |url = http://uk.reuters.com/article/basicIndustries/idUKL2359268120070326 |archive-url = https://archive.today/20120715234012/http://uk.reuters.com/article/basicIndustries/idUKL2359268120070326 |url-status = dead |archive-date = July 15, 2012 |title = Melrose sells McKechnie Aerospace in $856m deal |publisher = Reuters |date = 26 March 2007}} In early 2008, it bought FKI, an engineering business that included the Brush Turbogenerators unit, in a £480m deal.{{cite web |url=https://next.ft.com/content/04e175b6-0fd7-11dd-8871-0000779fd2ac |title=FKI accepts £480m bid from Melrose |date=22 April 2008 |publisher=FT |access-date=10 April 2016}} The company opted to sell on Dynacast for $590m in 2011.{{cite web |url=http://www.ft.com/cms/s/0/30a8aed8-9055-11e0-9227-00144feab49a.html |title=Melrose sells Dynacast for $590m |work=Financial Times |access-date=30 March 2015}} During June 2012, Melrose sold McKechnie Plastic Components to Swedish firm Rosti for £30.7m.{{cite web |url=http://www.insidermedia.com/insider/yorkshire/72662-melrose-sells-70m-turnover-mckechnie/ |title=Melrose sells £70m turnover McKechnie |publisher=Insider Media |date = 26 June 2012 |access-date=10 April 2016}}

During August 2012, it acquired Elster, a metering business, for $2.3bn.{{cite web |url=https://www.bloomberg.com/news/2012-06-29/melrose-agrees-to-buy-elster-for-2-3-billion-to-add-metering.html |title=Melrose to Acquire Elster for $2.3 Billion to Add Metering |publisher=Bloomberg L.P. |date=29 June 2012 |access-date=26 June 2014}} In July 2015, Melrose sold Elster to American engineering conglomerate Honeywell in a £3.3bn deal;{{cite news |url=https://next.ft.com/content/efd7b43c-34f9-11e5-bdbb-35e55cbae175 |title=Melrose shares soar on £3.3bn sale of Elster to Honeywell |newspaper=Financial Times |date=28 July 2015 |access-date=10 April 2016}}{{cite web |url = https://www.wsj.com/articles/melrose-sells-elster-to-honeywell-for-5-1-billion-1438065494 |title = Honeywell Pays $5.1 Billion for German-Based Elster |newspaper = Wall Street Journal |first = Alex |last = MacDonald |date = 28 July 2015}} of this windfall, £2bn was distributed to Melrose's investors while the remainder went to other corporates purposes, including debt reduction.{{cite web |url = https://www.telegraph.co.uk/finance/newsbysector/industry/engineering/11767786/Melrose-investors-in-line-for-2bn-payout-after-Honeywell-buys-Elster.html |title = Melrose investors in line for £2bn payout after Honeywell buys Elster |newspaper = The Telegraph |first = Alan |last = Tovey |date = 28 July 2015}}

On 29 September 2015, Melrose Industries incorporated a new corporate structure.{{cite web |url=https://beta.companieshouse.gov.uk/company/09800044/ |title=Melrose Industries Plc |publisher=Companies House |access-date=6 January 2020 |quote=Incorporated on 29 September 2015 }} During the late 2010s, the company was reportedly subject to vigorous criticism over the generosity of its long-term bonus scheme, which paid out £167m to Melrose's four bosses over its performance in 2018, during which revenues and profits had both dramatically increased.{{cite web |url = https://www.telegraph.co.uk/business/2019/03/30/melrose-feels-heat-payouts-top-executives/ |title = Melrose feels the heat over payouts to top executives |newspaper = The Telegraph |first = Alan |last = Tovey |date = 30 March 2019}}{{cite web |url = https://www.cipd.co.uk/about/media/press/150818-ftse-ceo-pay |title = Total FTSE 100 Chief Executive pay has increased by 11% in the past year |publisher = cipd.co.uk |date = 15 August 2018}}{{cite web |url = https://www.insidermedia.com/news/midlands/melrose-revenue-smashes-2bn-mark |title = Melrose revenue smashes £2bn mark |publisher = insidermedia.com |first = Jon |last = Robinson |date = 20 February 2018}} Melrose has reportedly gained the backing of multiple leading market institutions, such as Schroders and Fidelity.

In July 2016, the company acquired Nortek, a ventilation equipment manufacturer, for £2.2 billion.{{cite web |url=https://www.telegraph.co.uk/business/2016/07/06/melrose-bets-22bn-on-us-housing-growth-with-nortek-takeover/ |title=Melrose bets £2.2bn on US housing growth with Nortek takeover |newspaper=The Telegraph |date=6 July 2016 |access-date=2 September 2016}} By 2018, Nortek was reporting a 52 per cent increase in adjusted operating profits across the previous year, having met its original three-to-five-year targets for the company within 18 months.{{cite web |url = https://www.investorschronicle.co.uk/shares/2018/02/20/melrose-delivers-on-nortek-pines-for-gkn/ |title = Melrose delivers on Nortek |publisher = investorschronicle.co.uk |first = Tom |last = Dines |date = 20 February 2018}}

During January 2018, Melrose Industries announced its plans to purchase GKN as well as the firm's restructuring thereafter;{{cite web |url = https://www.flightglobal.com/airframers/melrose-presents-gkn-takeover-plan-to-shareholders/126725.article |title = Melrose presents GKN takeover plan to shareholders |publisher = Flight International |first = Michael |last = Gubisch |date = 15 January 2018}} that same month, GKN's management rejected the initial bid made.{{cite web |url = https://www.flightglobal.com/systems-and-interiors/gkn-to-reorganise-after-rejecting-takeover-bid/126709.article |title = GKN to reorganise after rejecting takeover bid |publisher = Flight International |first = Michael |last = Gubisch |date = 12 January 2018}} In March 2018, Melrose submitted a revised £8.1 billion bid for the company; this bid was controversial and was subject to criticism, being branded by some press agencies as a hostile takeover.{{cite web| url=https://www.bloomberg.com/news/articles/2018-01-17/melrose-makes-sweetened-10-2-billion-offer-to-acquire-gkn| title=Melrose Makes $10.2 Billion Hostile Offer to Acquire GKN| author=Phil Serafino, Benjamin D Katz| date=17 January 2018| publisher=Bloomberg| access-date=1 May 2018}}{{cite web |url = https://www.theguardian.com/business/2018/mar/29/whats-the-controversy-over-melroses-hostile-takeover-of-gkn |title = What's the controversy over Melrose's hostile takeover of GKN? |first = Julia |last = Finch |work = The Guardian |date = 29 March 2018}} Melrose's offer received shareholder support and was accepted.{{cite news |url= https://www.flightglobal.com/news/articles/melrose-wins-shareholder-support-for-gkn-takeover-447212/ |title= Melrose wins shareholder support for GKN takeover |date= 29 March 2018 |first= Michael |last = Gubisch |work= Flightglobal}}{{cite news| url=https://www.wsj.com/articles/melrose-industries-wins-bruising-takeover-battle-for-britains-gkn-1522339171| title=Melrose Industries Wins Bruising Takeover Battle for Britain's GKN| first=Robert| last=Wall| date=29 March 2018| newspaper=The Wall Street Journal| access-date=1 May 2018}} Following a formal review of the purchase, including of various objections put forward by GKN workers and trade unions, the UK Government allowed the transaction to proceed in April 2018;{{cite web |url=https://www.bbc.co.uk/news/business-43594542 |title=GKN takeover concerns to be assessed by government |date=30 March 2018 |publisher=BBC News |access-date=3 April 2018}}{{cite web |url = https://www.parliament.uk/business/committees/committees-a-z/commons-select/business-energy-industrial-strategy/inquiries/parliament-2017/future-of-gkn-17-19/ |title = The future of GKN inquiry: Business, Energy and Industrial Strategy Committee |publisher = parliament.uk |date = March 2018}} Melrose agreed to comply with several national security measures.{{cite news |url=https://www.reuters.com/article/us-gkn-m-a-melrose-inds/british-government-gives-melrose-takeover-of-gkn-the-green-light-idUSKBN1HV1U5 |title=GKN takeover given green light |date=24 April 2018 |work=Reuters |access-date=24 April 2018}}

In October 2019, Melrose Industries announced the appointment of Funmi Adegoke to its Board as an inaugural independent non-executive Director.{{Cite web|url=https://www.insidermedia.com/news/midlands/Melrose-appoints-inaugural-non-executive-chairman|title=Melrose appoints inaugural non-executive chairman|last=Media|first=Insider|website=Insider Media Ltd|date=6 September 2018 |language=en|access-date=2020-03-24}}{{Cite web|url=https://www.directorstalkinterviews.com/melrose-industries-plc-appoint-funmi-adegoke-as-independent-non-executive-director/412794285|title=Melrose Industries PLC Appoint Funmi Adegoke as Independent Non-Executive Director|last=Arbor|first=Giles|date=2019-10-01|website=DirectorsTalk Interviews|language=en-GB|access-date=2020-03-24}}

During 2020, David Roper, one of the Melrose's three original founders, was set to step down as executive vice-chairman and depart the firm; the move would be allegedly due to disagreements over recent business strategy.{{cite web |url = https://www.proactiveinvestors.co.uk/companies/news/219947/melrose-industries-says-co-founder-to-quit-trading-in-line-with-expectations-219947.html |title = Melrose Industries says co-founder to quit; trading in line with expectations |publisher = proactiveinvestors.co.uk |first = Ian |last = Lyall |date = 9 May 2019 }}

In March 2023, Melrose Industries announced that it would demerge GKN Automotive and GKN Powder Metallurgy from GKN as Dowlais Group.{{cite news|url=https://www.investorschronicle.co.uk/news/2023/03/10/melrose-sets-gkn-demerger-in-motion/|title=Melrose sets GKN demerger in motion|date=10 March 2023|newspaper=Investors' Chronicle|access-date=15 April 2023}} In May, Melrose abandoned its 'buy, improve and sell' model, instead, the Company would focus on aerospace and then return cash to shareholders.{{Cite news |date=2023-05-11 |title=Waning of the Melrose model is the end of an era for London |work=Financial Times |url=https://www.ft.com/content/55abd967-8e38-4f11-b2c5-55693f259eae |access-date=2023-05-12}}

Melrose's main subsidiaries are Brush Turbogenerators, GKN and Nortek.

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{{Melrose plc}}

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Category:Companies based in the City of Westminster

Category:Financial services companies of the United Kingdom

Category:Financial services companies established in 2003

Category:Companies listed on the London Stock Exchange

Category:2003 establishments in England

Category:British companies established in 2003

Category:Companies based in London

Category:Manufacturing companies of the United Kingdom

Category:Manufacturing companies established in 2003

Category:Companies in the FTSE 100 Index